INCOME TAXES

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

INCOME TAXES

6. INCOME TAXES

(a)  Enterprise Income Tax (“EIT”)

Tancheng Group Co., Ltd. was incorporated in the State of Nevada. Tancheng Group Co., Ltd. is an U.S. entity and is subject to the United States federal income tax. No provision for income taxes in the United States has been made as Tancheng Group Co., Ltd. had no United States taxable income for the years ended December 31, 2024 and 2023.

Qiansui International was incorporated in the Cayman Islands. Under the current tax laws of Cayman Islands, Qiansui International is not subject to taxation.

Qiansui HK was incorporated in Hong Kong and is subject to an income tax rate of 16.5% for taxable income generated from operations in Hong Kong.

Qiansui Consulting and Qiansui Media were incorporated in the PRC and they are subject to profits tax rate at 25% for income generated and operation in the country.

The Company operates its business through a subsidiary incorporated in the PRC which is subject to a corporate income tax rate of 25%. A reconciliation of the effective tax rates from 25% statutory tax rates for the years ended December 31, 2024 and 2023 is as follows:

	For the years ended December 31,
	2024			2023
Loss before tax	$	(288,160	)	$	(289,666	)
Tax expense (benefit) calculated at statutory tax rate		25%			25%
Computed expected benefits		(72,040	)		(72,417	)
Non-deductible expenses		40,722			–
Change in valuation allowance		29,691			72,417
Tax effect on tax losses expired		1,627			–
Income tax expense	$	–		$	–

The full realization of the tax benefit associated with the losses carried forward depends predominantly upon the Company’s ability to generate taxable income during the carry-forward period.

In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. A valuation allowance is provided for deferred tax assets if it is more likely than not that these items will either expire before the Company is able to realize their benefits or that future deductibility is uncertain.

As of December 31, 2024 and 2023, the Company had deferred tax assets of $252,874 and $229,999 using the PRC statutory rate of 25%, respectively. As management of the Company believes that it is more likely than not that the benefit from the loss carried forwards will not be realized, the Company recorded a full valuation allowance of $(252,874) and $(229,999) for the years ended December 31, 2024 and 2023, respectively. There were no deferred tax liabilities as of December 31, 2024 and 2023.

As of December 31, 2024, net operating tax loss carried forward in the PRC was expected to expire as follows: 

As of December 31,	Tax loss carried forward
2025	$	3,425
2026		1,288
2027		853,026
2028		30,349
2029		123,408
	$	1,011,496

(b)  Value Added Tax (“VAT”)

In accordance with the relevant taxation laws in the PRC, the normal VAT rate for small-scale VAT payers on domestic sales is 3%. In response to COVID-19, there are various VAT incentives, the Company was eligible for a reduced VAT rate of 1% until May 2023. Beginning June 2023, the Company was no longer qualified as a small-scale VAT payer and was subject to the normal VAT rate of 13% for the year ended December 31, 2024.